African Activist Archive

Contents: The Purpose of Measure B • Will Measures A and B Cost the City Money? • Can Safety Requirements be Met for the City's Funds under Measures A and B? • Will the City's Funds be Less Liquid in These Alternative Investment Areas? • Will the City Lose Special Services that Only the Largest Banks Can Offer? • Do the Measures Conflict with State Law? • Measures A and B will require Berkeley City funds to be removed from banks which make direct or indirect loans to South Africa. Measure B will appear on the April 17 ballot to assure that the public will define "indirect bank loans to South Africa" as: 1) loans from branches outside the U.S.; 2) purchase of South African government bonds; and 3) participation in consortia lending to South Africa. With the clarification, alternative financial institutions for Berkeley City funds can include Central Bank, First Enterprise, Security National, and all Savings and Loan Associations. The document argues that these measures actually may gain revenues above the benefits of local investment to the community. Repurchase Agreements, currently conducted through banks that loan to South Africa, make up approximately $3.4 million of the city's investments; of this, close to $3.3 million is managed by the United California Bank alone. According to Robert Zeven, vice-president of the United States Trust Bank in Boston, any bank that owns treasury bills can make available Repurchase Agreements. Savings and Loan Associations generally offer higher interest rates on certificates of deposit than do the large commercial banks. The essence of a socially responsible investment policy is to aim public money towards investment for the public good. State laws that requires maintaining the highest interest rates and collateralization on deposits over $100,000 for municipal funds will be met under Measures A and B. The analysis mentions the Citizens' Committee on Responsible Investments, treasury bonds, commercial paper, Central Bank, community development projects, Bank of California, the Federal Reserve Bank, and the City Council.

African Activist Archive

ANALYSIS OF FINANCIAL IMPLICATIONS OF MEASURES A & B

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